Uber to raise $750 million in debt financing to fund its purchase of Careem

Image courtesy of Uber

Source: MenaBytes

Uber today has announced that it will raise $750 million in debt financing primarily to fund its pending acquisition of Dubai-based Careem.

“[Uber] proposes to offer $750 million principal amount of Senior Notes due 2027, subject to market conditions and other factors,” said Uber in a statement today.

The American ride-hailing giant that listed on the New York Stock Exchange in a flop IPO four months ago and continues to struggle had announced in March earlier this year that it is acquiring its Middle Eastern rival Careem for $3.1 billion in a cash and stock deal. Uber at the time had said that the deal consists of $1.7 billion in convertible notes and $1.4 billion cash.

Uber apparently needs the money to fund the cash portion of the deal that is expected to close in January 2020.

According to Uber’s SEC filings, the majority of Careem convertibles will be issued to Careem stockholders upon closing of the deal, and will mature 90 days after their respective dates of issuance. The Careem convertible notes are convertible into shares of Uber’s common stock at a price of $55 per share (Uber is currently trading at $34.3).

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